The Euro plummeted in today’s European session, dropping from a high of 1.4344 by over 110 pips to a session low of 1.4210. The single currency is currently a few pips above a support level seen around the 1.4210 levels, which if broker will see a swing in the recent upward trend of the Euro as seen from the hourly chart. Should this swing occur the next support level for the EURUSD is seen at 1.4120, the preceding trough of the pairs upward trend and a level which will denote the 161.8% Fibonacci retracement level of the swing. The recent downward movement of the pair is thought to be further to a strengthening Dollar as investors sought the world’s reserve currency after the Canada’s Consumer Price Index for April came out at 3.3%, a fraction lower than the expected 3.4%. Additionally worries over how to tackle the Greek debt problem caused investors to cut their bullish positions in the Euro ahead of the weekend.
The Sterling remained supported today further to positive retail sales data released yesterday, however gains were limited as concerns with regards to the country’s economy still linger, in spite of the high inflation. The GBPUSD pair rose to a high of 1.6273, some 40 pips above the session open, but met strong resistance at these levels at came back down to trade around the session open of 1.6232. Strong resistance is expected should the Sterling rise once again, around the 1.6264 levels, as it denotes a previous peak in the British pounds recent downtrend, as can be viewed from the 4 hour chart, as well as the current 55- 4Hourly moving average. Support for the Sterling is seen at 1.6200, with further support at 1.6100 – a support that if broken should see the GBPUSD continue in its downtrend.
The EURGBP broke through and traded outside of its recent range in today’s European session. The cross pair had been trading between the levels of 0.8790 and 0.8840 in recent session, but today’s European session saw the pair plunge some 60 pips to a low of 0.8759. The pair has taken somewhat of a pause in its drop as it met support at the 161.8% Fibonacci extension level of the range which is seen at 0.8758 – a level which also denotes the current 55-day moving average of the pair.
The Canadian Dollar dropped against the US Dollar today as a lower than expected CPI of 3.3% and a much lower than expected Retails Sales for March of 0% from an expected value of 0.9%, pushed the USDCAD pair to a day’s high of 0.9737 from a level of 0.9666 prior to the release of the news. Resistance for the pair is seen at Wednesday’s peak of 0.9758.